Aggregate Excess of Loss Reinsurance

A form of Excess of Loss Reinsurance which indemnifies the Ceding Company against the amount by which all of the Ceding Company’s losses incurred during a specific period (usually 12 months) exceed either:

  1. a predetermined dollar amount or
  2. a percentage of the company’s Subject Premiums (loss ratio) for the specific period.

This type of contract is also commonly referred to as “Stop Loss” reinsurance or “excess of loss ratio” reinsurance.